ASIC sues OnePath for fee-for-no-service


The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings against superannuation trustee OnePath Custodians for allegedly charging fee-for-no-service and making false and misleading representations to fund members.
According to the regulator, OnePath allegedly incorrectly charged over $4 million in fees to more than 18,000 fund members when it was not entitled to do so.
ASIC also alleged that from 15 December, 2015, OnePath charged financial advice service fees totalling $3,787,966.21 to 16,210 members who had been de-linked from their employer-sponsored superannuation plans.
Additionally, OnePath allegedly sent these members letters and annual statements until about May 2020 which failed to inform them of their rights regarding adviser service fees, including their right to terminate the fees.
Further to that, from December 2015 until about January 2019, OnePath incorrectly charged financial adviser service fees totalling $502,667.18 to 2,508 members who did not have a linked plan adviser, ASIC said.
According to ASIC, OnePath allegedly sent annual statements to these members until about October 2019 representing it was entitled to deduct adviser service fees from their accounts and that they were obliged to pay.
ASIC deputy chair Sarah Court said: “Superannuation is important for the future financial security of Australians. Consumers must be able to trust they are being charged fees correctly by their superannuation providers. ASIC’s case alleges that OnePath failed to do so in this case”.
ASIC would be seeking declarations, pecuniary penalties and other orders from the Federal Court.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.